Many exempt organizations bet on gaming activities for raising funds, or to allow members to socialize and foster fellowship. The support from the community through these gaming events can be essential for the success of charity initiatives, helping to provide much-needed assistance and resources to those in need. But any exempt organization that conducts any type of gaming must clearly understand the relationship between the gaming activity and its own exempt purposes to avoid jeopardizing its exempt status or generating unexpected tax liabilities. Whether the organization conducts a ga ..read more

As a business owner, you might often think about what it will be like when you decide to step away from your business. Before you start dreaming about a perfect retirement, there’s an important initial step in your exit planning journey, called the Discover Gate, as recommended by the Exit Planning Institute (EPI). This step involves understanding the actual value of your business and making sure it matches up with your personal financial goals. The process of planning your exit is thorough and aims at boosting the value of your business while ensuring it continues to operate smoothly after y ..read more

On Tuesday, April 30, the Drug Enforcement Administration (DEA) announced its recommendation to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act, emphasizing the significance of this move within the context of federal legislation. The change has significant implications for canna-businesses, including removing cannabis operators from the scope of Section 280E of the Internal Revenue Code (280E) and easing barriers to medicinal research. This reclassification could alleviate the conflict between state laws where cannabis has been legalized and federal law, u ..read more

Have you heard of the Foreign Derived Intangible Income deduction also known as FDII, but never thought it may apply to your business because it applies to manufacturers and distributors of tangible property?  This article will review how FDII also applies to domestic corporations that provide various types of services.  FDII is actually meant to incentivize U.S. corporations to retain their intangible assets and associated profits in the United States and to reduce the tax burden on foreign income. In general, a domestic corporation may claim a deduction, equal to 37.5 percent of i ..read more

With the first quarter of 2024 behind us, many American manufacturers reflected on the challenges of 2023 and await the remainder of 2024 with positive outlooks. In the National Association of Manufacturers’ (NAM) survey of 300 respondents, regulatory burdens, staffing struggles, and increasing healthcare costs were at the forefront of the industry’s challenges. However, there were indications of growth in sales and production, as well as employee retention, that contributed to optimism for the year ahead. According to NAM’s survey respondents in February, American manufacturers anticipate 2 ..read more

Welcome to the April 2024 issue of Insights, a newsletter from HBK Nonprofit Solutions designed to help you navigate the financial challenges of operating a nonprofit organization.  In this issue: Senior Manager Anthony Savasta, CPA, helps you prepare for your nonprofit financial statement audit. High Performance Principal Michael B. Ross explains how to set clear expectations for board members to ensure your board is engaged, active, and supportive. Three members of the HBK Nonprofit Solutions team share their takeaways from the three days of seminars at the 2023 AIDPA National Nonprof ..read more

Owners of construction companies are great at completing construction projects on time and on budget, but many struggle or fail to build a succession plan for themselves or their business. Like most construction projects, a succession plan is based on your objectives; it should accommodate your goals for yourself and your business, including considerations of wealth, family, and legacy. It’s a complex process involving a multitude of financial as well as personal considerations and the contributions of a variety of financial and other professionals. In my work with contractors spearheading th ..read more

Does your business provide training to its employees in manufacturing or technological skills? If so, TechCred could serve as a valuable program to offset these costs. May 1, 2024, marks the opening of another Ohio TechCred application period to take advantage of these opportunities. What is TechCred? In 2019, TechCred was created and funded in the state budget under House Bill 2. The bill allows employers to secure reimbursement for training-related expenses in manufacturing and technology fields of up to $30,000 per round. Furthermore, employers can choose a training provider that best fits ..read more

The Florida state sales tax rate on rentals, leases, or licenses to use real property is scheduled to decrease to 2% (from 4.5%) on June 1, 2024. This year’s tax rates reduction follows a reduction in December 2023 that reduced the rate from 5.5% to 4.5%. The tax on rentals, leases, or licenses to use real property generally applies to commercial office space, warehouses, and self-storage units. The rate reduction does not apply to storage of motor vehicles, boats, or aircraft. The sales tax rate is based on when the occupant is entitled to occupy the property, not necessarily when the rent i ..read more

In the realm of fiscal uncertainties, one glaring example stands out: the precarious state of Social Security. As workers diligently contribute to this safety net, the harsh reality revealed in the 2023 OASDI Trustees Report looms ominously: within a decade, retirement benefits could face a staggering 25 percent reduction. This sobering truth, widely acknowledged, serves as a stark reminder of the fragility of our financial systems. But amidst this well-known dilemma lies a lesser-known threat, a new contender vying for a slice of your hard-earned income: state-based long-term care programs ..read more